Classification of expense - Service industries
5.1 - Operating expenses
Operating expenses include:
- Salaries, wages and benefits
- Commissions paid to non-employees
- Professional and business services fees
- Subcontract expenses
- Charges for services provided by head office
- Cost of goods sold
- Office supplies
- Rental and leasing
- Repair and maintenance
- Insurance
- Advertising, marketing and promotions
- Travel, meals and entertainment
- Utilities and telecommunications expenses
- Property and business taxes, licences and permits
- Royalties, rights, licensing and franchise fees
- Delivery, warehousing, postage and courier
- Financial services fees
- Amortization and depreciation of tangible and intangible assets
- Bad debts
They exclude:
- write-offs
- capital losses
- extraordinary losses
- interest on borrowing
- other non-recurring items
- charitable and political expenses
- research and development expenses
- education and training expenses
- recruiting expenses
| Code | Title |
|---|---|
| 5.1.1Salaries, wages and benefits | Salaries, wages and benefits |
| 5.1.2Other labour costs | Other labour costs |
| 5.1.3Cost of goods sold | Cost of goods sold |
| 5.1.4Rental, leasing, utilities and telecommunications | Rental, leasing, utilities and telecommunications |
| 5.1.5Repair and maintenance | Repair and maintenance |
| 5.1.6Amortization and depreciation of tangible and intangible assets | Amortization and depreciation of tangible and intangible assets |
| 5.1.7Advertising, marketing, promotions, travel, meals and entertainment | Advertising, marketing, promotions, travel, meals and entertainment |
| 5.1.8Other purchased goods and services | Other purchased goods and services |
| 5.1.9Other operating expenses | Other operating expenses |
- Date modified: